The rising crude oil price changes everything. It affects the price of food, transport, energy and manufacturing, and as a non-renewable resource, crude prices will not be going down in the long term. And if you thought it was carbon emission reductions or environmental reasons that are driving the increased uptake of conferencing and collaboration technology – think again. Although there are environmental benefits, it’s the rising fuel prices that are the real drivers.
With soaring fuel prices rocketing north towards $1.80 a litre at the bowser in Sydney and no sign of easing, airlines, motorists and consumers are feeling the pinch. Increasing supplies of crude may alleviate the pain in the short term, but just how far the price will come down as a result, if at all, is anyone’s guess.
So what can organisations do to reduce spend on business travel? There is a lot of interest globally in remote working, teleworking (www.teleworkexchange.com), or distributed working and this will only increase as travel costs continue to increase. This type of working relies on virtual meeting technologies including video conferencing and online collaboration tools. There are pros and cons of distributed working models. From the benefits side, virtual meetings deliver more than cost reduction; they leverage the talents and resources across a team, allow greater flexibility for some roles, reduce the need for office space and reduce the time spent in airports. Then there are the environmental benefits from reduced greenhouse gas emissions (www.telstra.com.au - Page 34). In terms of productivity, think about a return trip from Melbourne to Sydney - it could easily set you back 6-8 hours including waiting, travel and taxi/transit time and a $100 in taxi fares. Sure there are some productivity savings when you the use a PDA or Smartphone while you are waiting around, but there is definitely loss of productivity during travel (www.smartofficenews.com.au).
So why don’t more businesses use video conferencing and collaboration tools like WebEx, Live Meet, etc to conduct meetings to reduce travel costs? What’s stopping the take-up of conferencing and collaboration solutions?
Flexible working unfortunately is not appropriate for everyone. Some staff, by the nature of their job, have to be physically present to complete their work. There is also the argument that the energy needed to allow for an increase use of the technology that enables flexible working may outweigh the energy savings achieved from the reduced travel. If these technologies are used appropriately, and in fact do replace travel, this should not happen.
I also understand how company culture can limit use of virtual meetings and previous negative experiences of video conferencing have put businesses off, but the good news is technology has progressed. If you’ve had a bad experience, maybe it’s time to try again.
The business case for virtual meetings is clear. Reduce the corporate travel spend by 5 or 10% and re-invest this money, or at least some of it, in high definition video conferencing equipment and collaboration software or services, and training and support to ensure it becomes embedded into work culture. Cisco (www.cisco.com) for example has committed to reducing carbon emissions by a minimum of 10 percent, starting with a reduction in the company’s air travel in 2008. In achieving this, they will invest US$20 million in collaborative technologies, such as Telepresence, that will reduce the need for physical travel across the company.
So what is stopping you from replacing business travel with virtual meetings using conferencing and collaboration technologies? Ask yourself if it is really necessary to travel. A good test is to ask yourself – would I be here if I was willing to pay for the taxi or the flight itself? Think about what you could do with that extra time spent in transit.
Survey:
Learn more: